HVAC Equipment Prices Going up in 2025, but why?
We have some significant news regarding heating, ventilation, and air conditioning. HVAC equipment prices and regulatory changes regarding R-410A coming in 2025 could affect your home or business.
EPA Changes for Refrigerant
EPA is gradually phasing out the use of R-410A refrigerant due to its high global warming potential (GWP) and other issues. Here are the main reasons driving this transition:
- Environmental Impact: When it escapes into the atmosphere, R-410A contributes significantly to climate change with a high global warming potential (GWP) of 2,088. The EPA is working towards shifting to alternatives with lower GWP. Ratings like R-32 and R-454B, to reduce the environmental effects of refrigerants.
- Regulatory Compliance: Global agreements such as the Kigali Amendment to the Montreal Protocol aimed at decreasing the use of hydrofluorocarbons (HFCs), including R-410A, through a gradual reduction. The United States is working to reduce HFC usage in order to combat climate change.
HVAC Equipment Prices Rise
Manufacturers’ move to R-410A refrigerants is expected to increase the cost of new units.
- Material Cost: The rising costs of procuring key raw materials for HVAC system production are causing price increases.
- Supply Chain: Consumers are facing increased production costs due to disruptions in the supply chain.
- Labor: The Department of Labor has introduced new overtime regulations that will affect HVAC contractors. These changes raise the minimum salary levels needed to exempt specific employees from federal overtime pay obligations.
Major OEMs Price Increase around 6% – 8% In 2025
Industry experts anticipate that manufacturing expenses for units using the new refrigerants will rise in 2025, leading to higher retail prices for those HVAC systems. Furthermore, as R-410A is gradually phased out, the prices of existing units and components might also be affected.
What Does This Mean For You?
You might not see a big change like HVAC experts do. The HVAC equipment you currently have at home can still be maintained. While R-410a production will stop in 2025, manufacturers have assured you that there will be parts available.
If your system is not functioning well or getting old, you may need to consider replacing it sooner than planned. When you’re in the market for new units, look into options that use alternative refrigerants such as R-32 and R-454B instead.
By switching to these new refrigerants, we can bring environmental advantages and possibly improve efficiency, but we will also face challenges.
The true effectiveness of these refrigerants will only be clear as they are used more widely over time. The industry must stay adaptable and ready to tackle these changing challenges to make the transition successful.
Save Now, Replace HVAC Equipment Today!
R-410A systems are known for their reliability and effective performance, but emerging refrigerants provide a chance to enhance environmental stewardship and possibly save on costs due to better efficiency.
Like any new technology, there will be challenges and unknowns that will unfold as time goes on. It’s important to thoughtfully consider both the short-term and long-term advantages alongside any potential risks and expenses to ensure your decision reflects your priorities and values.
Don’t hesitate to reach out to Arizona Valley Heating & Cooling. We’re ready to assist you in making the right choice for your needs. We offer finance on HVAC Equipment.
